Insurance of all types is on an ever-high today, and the whole industry is soaring in comparison to what it was a few years ago. Insurance comes in many ways, including life insurance, health insurance, general insurance, motor insurance, and term insurance.
Health insurance and term insurance are becoming increasingly popular today after the pandemic hit the world in 2019. People started to realize the benefit of these insurances when there were unforeseen medical expenses at the time of the economic crisis.
The term insurance plan has been introduced in India by some of the best local and global insurance companies. Term insurance is one of the types of life insurance but with some clauses that differ from general insurance. Read on to find out more about term insurance and its benefits over life insurance.
What is Term Insurance?
Term Insurance is a type of insurance that provides a sum of money for the insured party’s nominees in case of a misfortune demise of the insured party. This kind of insurance is different from life insurance in that if the insured person outlives the tenure of maturity of the term insurance, the money invested is not given back to the client or their family.
It is only applicable if the insured party meets an unfortunate end or has a disability due to an accident or illness that leaves the family with no income or money to survive. This clause is also called a Disability rider which is provided by some of the term insurance plans but not all.
Term insurance is one of the best investments for a person for their family. In a world full of uncertainties, diseases, and pandemics, it is a way to ensure that a person’s family can fend for themselves with a substantial amount that the insured party pays every year. The coverage of the insured person can vary based on many factors such as:
- Type of plan
- Tenure of the plan
- Age of the insured
- Medical fitness of the insured
- The city that they live in, etc
These are some of the factors that are taken into consideration when issuing a term plan from an insurance company. The policy’s value is determined by the evaluator, who analyses the risk for providing a term insurance plan to the client and decides the maximum coverage and the tenure for coverage for the individual.
Best Term Insurance Plans in India
There are many companies that provide a term insurance plan in India. When choosing a term insurance plan, a policyholder must be aware of all the clauses and claim policies and understand the risk and benefits before taking on term insurance.
The same must be understood by the nominees of the term insurance policy as well. Riders such as the disability clause, inability to work because of a chronic illness, and many other such riders are available to add to the policy. Policyholders must make use of these advantages and benefits available.
Below are the most popular term insurance policy providers in India:
- HDFC Life Term Insurance
- ICICI Prudential Term Insurance
- Max Life Insurance
- Bajaj Allianz Term Insurance
- TATA AIA Term Insurance Plan
- Kotak Life Insurance
- Pnb Metlife Term Insurance